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Americans borrowed record $1.61 trillion to buy homes in 2021

Mortgage lenders issued $1.61 trillion in buy loans in 2021, up from $1.48 trillion in loans issued in 2020 and marking the very best mortgage borrowing numbers ever recorded.

The 2021 figures exceeded a earlier document set in 2005, when $1.51 trillion in loans had been issued, based on The Wall Street Journal.

The record-setting numbers replicate a red-hot housing market. Originally of the pandemic, individuals had been drawn to the market with low rates of interest and want to have extra space at dwelling — needs that proceed to drive up home costs, the Journal famous.

Americans borrowed record $1.61 trillion to buy homes in 2021

Home prices went up by 18.4 % in October, marking a slight drop from when dwelling costs had been up by 19.1 % in September.

However with a powerful labor market, People who’ve obtained pay raises or saved throughout the pandemic are probably ready to step into the housing market regardless of the hovering prices.

The Bureau of Labor Statistics reported that wages for all private-sector staff elevated by 4.6 % 12 months over 12 months within the third quarter, the Journal famous.

Americans borrowed record $1.61 trillion to buy homes in 2021

“All of that additional earnings goes someplace, and plenty of it went into housing,” Taylor Marr, deputy chief economist at Redfin Corp., a real-estate brokerage, advised the newspaper.

 

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